question about monthly payments and gifts and taxable income

Hello, I understand that montly payments (direct debit) that family members abroad send to their children living in UK does not count as taxable income, and when the children are receiving working tax credits as well, this does not need to be reported, is this right? It does not generate any interest in a bank, so guessing would be classed a sa gift. Thanks for your reply

Hi,

There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends. These would then potentially be subject to tax. You can see guidance here:

Tax on savings interest

Tax on dividends

Thank you.